The Golden Straightjacket

The Golden Straightjacket

The Golden Straightjacket is economic and decision-making power system of the states, in the competition of a quest to the most effective and efficient economic system which can generating rising standard of living. The term first began popularized in 1979 by Margareth Thatcher and then reinforced by Ronald Reagen.

To fit into the Golden Straightjacket, a country must adopt the so-called "Golden Rules" as follows;

1. Making the private sector the primary engine of economic growth

2. Maintaining a low rate inflation and price stability

3. Shrinking the size of its state bureaucracy

4. Maintaining a balanced budget, and or surplus

5. Lowering tariffs on imported goods

6. Removing restriction on FDI

7. Getting rid of quotas and domestic monopolies

8. Increasing exports

9. Privatizing state-owned industries and utilities

10. Deregulating capital market

11. Making its currency convertible

12. Opening its industries, stock and bond to foreign ownership and investment

13. Eliminating government corruption

and, etc.

(Friedman, Thomas.L, The Lexus and The Olive Tree, Understanding Globalization, New York; 2000)